Landowners stand together!
Landowner Meeting about Oil & Gas Leasing
1:00 pm, Saturday April 21, 2012
Log Cabin Building
Tyler County Fairgrounds
outside Middlebourne, WV on Route 18
Sponsored by JRM Consulting Land Mgmt.
Here is a recent comment from our consultant, Jim Milleson:
I had a great conversation with Mr. Seckman of Tyler County FFA Alumni, they are having their FFA Auction April 21st with breakfast starting at 7am, and auction starting at 10am...Please come out and support the local FFA Alumni and get some food prior to the start of our 5 STAR Landowners educational meeting. We look forward to another good turnout as our guest speaker will be Robert Cupp of Wesbanco,talking to us about investments and financial opportunities. I hope to see you all there. Come early and stay late!
If you haven't yet got your copy of the OHIOACRES4U lease form I have enclosed it as an attachment. I would like to hear some feedback as to the language of this lease and any concerns that you might have. We have been meeting with clients one on one to speak about personal concerns and issues. I have a second meeting scheduled at 5pm across the river with a potential buyer on Saturday the 21st, I will need to leave directly following the meeting, if you have questions please get them to me prior to the start of the meeting or make sure u ask thenm during the open session. I will remind you that we are closing the group meetings for the public after this meeting. Starting May 1st we will be at 5% for any new member and we will then be meeting in each of the 5 counties,so we can share the net acreage maps with fellow members.
Please stick together with your neighbors, we are entering a crucial time in the marketing phase. If u have questions call or email me.
If you follow this link you will find a report from Magnum Hunter. In that report there are comments about the value of what is going on in our area. There is proven production! Things are happening! http://www.magnumhunterresources.com/pressreleases.html (a portion of this report is pasted below)
Don't forget to come to the 5 STAR Landowners' Group meeting, this Saturday, April 21st, at 1pm, at the Log Cabin Building, Tyler Co. Fairgrounds, Rt. 18 south of Middlebourne, WV. We will continue to educate ourselves, put our acreage together, and then negotiate with the oil & gas companies with our concerns in mind.
Below is a portion of the Magnum Hunter report.
Magnum Hunter Provides First Quarter 2012 Company Wide Operational Update
During the first quarter of 2012, the Appalachian Basin Division had four wells drilled awaiting completion. Magnum Hunter completed one of the wells in April in order to obtain test data, and has decided to delay completion of the other three wells until the fourth quarter of this year, when gas processing facilities are projected to be completed and in service. This new area promises "Magnum Rich" gas once processing is established later this year.
In addition, the Company has drilled and cased one of its four planned wells in the Arch Field, to test the Weir formation, in its Southern Appalachia position. Surface casing has been set on the three remaining wells, and one is currently drilling the lateral section. All four wells are scheduled for completion during the second Quarter of 2012.
Mr. Jim Denny, President of the Appalachian Basin, commented, "Although Magnum Hunter has delayed the majority of its capital expenditures in the Appalachian division until the latter part of the year, we are excited about the recent production results from the Spencer #1150 well. Given the high condensate and high btu of over 1300, we believe this to be a new 'super rich' area for our Company which we have coined 'Magnum Rich.' We continue to evaluate the Utica Shale over in Eastern Ohio after closing on an acquisition of an additional 12,186 net mineral acres in February 2012. We anticipate drilling several test wells to this formation on our leasehold position prior to year-end."
The first quarter of 2012 was extremely active for the company's midstream division including a partial monetization of pipeline equity in Eureka Hunter, an acquisition of a natural gas treating and processing company, increased contracted pipeline throughput volumes that will exceed 100,000 mmbtus per day in 2014, began construction on the final pipeline laterals necessary to deliver gas for processing and have permitted for extensions of Eureka across the Ohio River to gather Marcellus and anticipated Utica volumes in Ohio.
Eureka Hunter monetized approximately 28% of its equity ownership in a transaction with ArcLight Capital Partners, LLC for an initial investment of $106.8 million and the ability to draw down an additional $93.2 million, based on certain terms and conditions and approval of Eureka Hunter, which would further fund Eureka's pipeline expansion growth plans. Magnum Hunter retained $359 million of value in Eureka Hunter units and cash, which is equivalent to $2.71 per Magnum Hunter common share.
Eureka Hunter acquired TransTex Gas Services, LP ("TransTex") on April 2, 2012, for $58.5 million in cash and Eureka Hunter common units. TransTex is headquartered in Houston, Texas, and contracts natural gas treating, processing and well head production equipment to the energy industry. TransTex owns a fleet of amine treating plants as well as JT and refrigeration processing plants that are deployed in Texas, Oklahoma, Arkansas, Kansas and West Virginia to capitalize on liquids rich gas and associated gas on oil shale drilling areas. The acquisition of TransTex brings additional cash flow as well as positive earnings to Eureka and substantially broadens its midstream capabilities to include not only gathering but also gas treating and processing.
Eureka Hunter completed construction of a 4 mile, 16-inch lateral into Doddridge County, WV, that could eventually be extended to the MarkWest Sherwood Plant. Eureka Hunter also completed phase 1 of the 20-inch Pursley Lateral in Tyler County, WV, to gather gas for Triad Hunter from the new Spencer lease wells. It is expected that the Pursley Lateral will be extended across the Ohio River into Ohio within the next few months.
After unsuccessfully attempting to negotiate a land/mineral friendly lease with Chesapeake and Antero on our own, we have decided to sign with 5 Star and let the experts negotiate for us. We attended meetings of both the 5 Star and Western Tyler Landowner groups (our property is in Meade District) and decided to sign with 5 Star. Western Tyler is a smaller group with a small geographical footprint (which we like) but they are way behind 5 Star on the learning curve and are nowhere near being ready to negotiate a contract with the O&G companies. If we don't like the contract 5 Star negotiates for us we are not obligated to sign. Now we set back and see what they can do for us!